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Multinational automotive manufacturer Stellantis announced it is exploring the use of electric-vehicle technology from its Chinese partner Leapmotor as it looks for ways to cut costs and stay competitive in Europe.
The legacy automaker, headquartered in the Netherlands, is considering expanding the scope of its joint venture to gain deeper access to Leapmotor’s battery systems and EV powertrain expertise, particularly for high-volume brands such as Fiat, Opel and Peugeot.
The talks are still in their early phases, and any agreement would have to navigate complicated regulatory sensitivities. Among the sticking points are European concerns about data protection when integrating Chinese-developed vehicle software.
In addition, new U.S. rules, set to take effect in 2027, will prohibit the import or sale of connected vehicles tied to Chinese or Russian technology, adding yet another layer of complexity. Even so, the companies are said to be aiming to reach an agreement before year’s end.
If completed, the move would mark a significant shift: a major Western automaker relying directly on Chinese-developed vehicle platforms and software for models sold in Europe. Stellantis already distributes Leapmotor vehicles, including the C10 SUV, through its European dealer network.
The company has publicly emphasized the strategic nature of the partnership, describing the alliance as a means to combine the strength of both groups. In a presentation on February 26th Stellantis said:
“2025 was a year of strategic implementation for the partnership, setting the stage for deeper integration.”
Greater technological integration could help Stellantis respond more quickly to intensifying competition from Chinese brands such as BYD, which have been gaining traction with competitively priced EVs in Europe. It would also provide a counterweight to established legacy players like Volkswagen Group and Renault, targeting similar markets.
The potential expansion comes at a time of broader strategic reset; Stellantis recently disclosed €22.2 billion in write-downs and is recalibrating its EV ambitions to address declining market share. Deepening ties with Leapmotor could offer Stellantis a faster, less capital-intensive route to modernizing its lineup, and offer the automaker a competitive edge in the face of fierce Chinese competition.
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